Buy a longer-dated put, sell a shorter-dated OTM put. Profits from time decay + a moderate drop.
๐ฏ Target
56d from today
โ๏ธ Legs
LONG PUT ยท $250 ยท Nov '26
Qty 1 ยท Premium $39.15 ยท ฮ -0.44
SHORT PUT ยท $240 ยท Oct '26
Qty 1 ยท Premium $27.62 ยท ฮ -0.41
P&L at Expiry
Stock (100 sh)Diagonal Put SpreadNowTarget
๐ก Stock vs Options at Target
If MRVL hits $240 by Oct 16:
the diagonal put spread returns
+$1,601
(138.8%)
on $1,153 risked, vs
$-1,101
(-4.4%)
for 100 shares on $25,101.
Options give 31.5ร capital efficiency.
๐ Expiry
Options expire Oct 16, 2026
(56 days out).
P&L shown is the value at expiry if MRVL is at $240.
Use the 30d / 60d / 90d / 180d pills to compare different expiries.
Forward Projection
Reprices legs at (target_price, target_date) via Black-Scholes. Works on existing BS service. Simplest mode โ ship first.
Historical Backtest
Uses our historical options chains to replay this exact strategy over past expirations. Needs: date picker, "rolling every N days", cumulative P&L chart.
Signal Backtest
"Run this strategy on every BUY-rated stock with score โฅ 80 for last 90d." Reuses score_backtest pipeline + strategy overlay.
Solve for Return
Inverse: user says "+50% in 90d", system solves for required price move, shows IV-implied probability. Pure math.
๐ P&L Scenarios โ what happens at different prices and dates
MRVL Price
Today
Sep 8
Sep 27
Oct 16 (exp)
$201
(-20%)
+$130
+$208
+$309
+$245
$213
(-15%)
+$152
+$255
+$423
+$562
$226
(-10%)
+$154
+$272
+$487
+$986
$240
(-4%)โ target
+$132
+$254
+$486
+$1,597
$246
(-2%)
+$115
+$235
+$462
+$1,301
$251
(0%)โ spot
+$98
+$214
+$432
+$1,072
$256
(+2%)
+$79
+$190
+$394
+$860
$264
(+5%)
+$46
+$146
+$323
+$572
$276
(+10%)
-$19
+$59
+$179
+$167
$289
(+15%)
-$92
-$41
+$16
-$154
$301
(+20%)
-$171
-$147
-$150
-$406
Uses MRVL's current IV for repricing. P&L includes all legs (stock + options). Qty: 1x.